Censi-Bouvard was to end on December 31, 2021 … However, this system was extended again – until December 31, 2022. Good news for all people who want to invest in a student residence or nursing home. For good reason, the key to this investment is a nice tax cut without any restrictions on geographical location. It’s all about the benefits of LMNP (Non-Professional Furniture Rental Company) status. But in practice, are the conditions of this system the same in 2022? Let’s register!
In 2022, you can still increase real estate with tax benefits! how ? Thanks to the expansion of the Censi-Bouvard system. The latter allows people who have decided to invest in a furnished apartment located in a service residence, to take advantage of the tax rebate. If all French households can benefit from this by 31 December 2022, three main conditions must be met:
- LMP (Professional Furnished Rental Companies) cannot claim Censi-Bouvard.
- Acquired furniture must be new and entrusted to the manager.
- The property must be leased under the status of LMNP (Non-Professional Tenant with Furniture) for at least nine years. Status that limits rental income to € 23,000 per year and 50% of total household income.
Conversely, in terms of location and rent: no restrictions! Acquired furnished real estate can be located in any geographical area. Rental is free, and tenants are not subject to resource constraints.
In 2022, tax cuts are still attractive to investors
In 2022, the tax reduction is the same as in 2021. Thus, for an investment in a managed residence, you can receive a tax rebate of 11% of the amount of your purchase within 300,000 euros excluding investment tax for the year. . Translation? For real estate of 300,000 euros without tax, your tax reduction will be 33,000 euros. The amount for nine years – in the amount of 3666 euros, deducted annually from your taxes.
Good to know: if in one year the amount of your reduction exceeds the amount of your taxes, you can carry over the balance of your tax reduction to the next year. Deferment, which you can extend for a maximum of six years (if housing is still rented at this time).
VAT: 20% can be refunded on the purchase price under the conditions
In 2022, as in 2021, Censi-Bouvard will allow you to take advantage of LMNP status. In this sense, you can refund 20% VAT on the purchase price of your new furnished property. Additional tax benefit that saves 31% on the price of your investment!
Of course, certain conditions govern this advantage. To benefit from this, follow these steps:
- Contact the tax center within three to six months from the start of operation of the residence where your property is located.
- Choose furnished accommodation in a residence that offers at least three services (reception, service, breakfast and / or home linen).
- Keep your home for at least 20 years. In case of early resale, you will be forced to reimburse (in proportion to the number of years remaining) the refunded VAT.
Tax breaks speak for themselves: the Censi-Bouvard expansion in 2022 is a boon for those who want to invest. However, as you understand, the conditions for the return of part of the price of your investment (31%) are many. Therefore, to provide a solid foundation for your investment project, which you must complete by December 31, 2022, you can turn to Réside Études. A group that has been a benchmark in the field of managed residences for more than 30 years.
Content created in partnership with Réside Études. No BFMTV member was involved in writing this content.